Global Financial Innovation Network (GFIN)

The Global Financial Innovation Network (GFIN) was formally launched in January 2019 by an international group of financial regulators and related organisations, including ASIC.

The GFIN is a network of 29 organisations committed to supporting financial innovation in the interests of consumers.

The GFIN seeks to provide a more efficient way for innovative firms to interact with regulators, helping them navigate between countries as they look to scale new ideas. This includes a pilot for firms wishing to test innovative products, services or business models across more than one jurisdiction.

It also aims to create a new framework for co-operation between financial services regulators on innovation related topics, sharing different experiences and approaches.

The GFIN’s functions

The GFIN was proposed in a consultation paper in August 2018 and 99 responses from 26 jurisdictions were received. The response from industry and other international regulators was overwhelmingly positive in favour of establishing the GFIN to facilitate a new practical method of regulatory collaboration on innovation and creating an environment for cross-border testing.

Following this consultation, the GFIN has finalised terms of reference for governance and membership of the group (PDF 544 KB) and confirmed 3 primary functions:

  • To act as a network of regulators to collaborate and share experience of innovation in respective markets, including emerging technologies and business models, and to provide accessible regulatory contact information for firms.
  • To provide a forum for joint regtech work and collaborative knowledge sharing/lessons learned.
  • To provide firms with an environment in which to trial cross-border solutions.

Since the end of the consultation, the GFIN has discussed further development of core functions and next steps of the Network. Alongside discussions on the sharing of experience, regulators involved agreed to launch a pilot phase of cross-border testing (for firms) and to formalise the membership and governance structure for regulators and international organisations interested in joining the Network.

Following the consultation feedback, the GFIN has:

  • Opened a 1 month application period for a pilot phase of cross-border testing. Interested firms are asked to submit applications to relevant participating regulators by 28 February 2019.
  • As part of the finalised terms of reference for governance and membership, expanding from the founding 12 members, the group now includes 28 organisations. Financial regulators and related organisations with a commitment to supporting innovation in the interest of consumers are invited to join.

Cross-border testing applications – pilot phase for firms

Consultation feedback indicated widespread support for creating an environment that allowed firms to simultaneously trial and scale new technologies in multiple jurisdictions, gaining real-time insight into how a product or service might operate in the market.

To support the development of cross border testing we have opened a 1 month application window for firms interested in joining a pilot cohort for cross-border testing.

Firms wishing to participate in this pilot phase must meet the application requirements of all the jurisdictions in which they would like to test. For example, a firm wishing to test in the UK, Australia and Hong Kong must independently meet the eligibility criteria, and/or other relevant standards, of the regulators in those jurisdictions. In Australia, that would mean meeting the eligibility criteria under ASIC’s regulatory sandbox licensing exemption.

Interested firms should note whether a particular regulator is the relevant authority for the proposed activity before applying to test in their jurisdiction.

Each regulator will decide whether a proposed test meets its individual screening criteria, areas of interest, and ability to support the activity. Each regulator will also make sure that appropriate safeguards for their jurisdiction are in place. Regulators are only responsible for tests in their jurisdictions and should consider the associated risks. We believe this is important to maintain high standards of consumer protection and market integrity in regulators’ respective jurisdictions.

Pilot tests will run for a 6-month period, unless regulators agree to extend them. We expect the pilots will run from Q2 2019.

This pilot is as much a trial for GFIN members as it will be for firms. We are looking for firms who can be flexible and agile in their participation, and can provide GFIN regulators with feedback on their experience. Firms will benefit from the opportunity to test and compete in the regulated space, and their tests will help inform the future work of the network. Over time, trials could inform regulatory authorities about potential areas of regulatory convergence, although we stress this is a longer-term opportunity.

Firms interested in applying to GFIN cross-border testing should review the list of regulators currently able to support the pilot test (see list below) and submit an application to each jurisdiction in which they would like to test before the 28 February 2019 deadline.

GFIN members currently participating in cross-border trials

Australian Securities & Investments Commission (ASIC)

Contact: Cuihua Cartwright

E-mail: cuihua.cartwright@asic.gov.au

Website: https://asic.gov.au/for-business/your-business/innovation-hub/regulatory-sandbox

Central Bank of Bahrain (CBB)

Contact: Yasmeen Al Sharaf

Email:   yasmeen@cbb.gov.bh

Website: https://www.cbb.gov.bh/page-p-regulatory_sandbox_en.htm

Bermuda Monetary Authority (BMA)

Contact: Moad Fahmi

Email:  innovate@bma.bm

Website:  http://www.bma.bm/document-centre/policy-and-guidance/INSURANCE%20II/BMA%20Insurance%20Regulatory%20Sandbox-Innovation%20Hub%20Guidance%20Note.pdf

British Columbia Securities Commission (BCSC) (British Columbia, Canada)

Contact: Zach Masum

Email:  techteam@bcsc.bc.ca

Website: https://www.bcsc.bc.ca/For_Companies/Technology/

Ontario Securities Commission (OSC) (Ontario, Canada)

Contact: Pat Chaukos

E-mail: osclaunchpad@osc.gov.on.ca

Website: http://www.osc.gov.on.ca/en/osclaunchpad.htm

Autorité des marchés financiers (AMF) (Québec, Canada)

Contact: Lise-Estelle Brault

E-mail: lise-estelle.brault@lautorite.qc.ca

Website: https://lautorite.qc.ca/professionnels/fintech-technologie-financiere/

Hong Kong Monetary Authority (HKMA)

Contact: Yvonne Tsui

E-mail: FinTech@hkma.gov.hk

Website:  https://www.hkma.gov.hk/eng/key-functions/international-financial-centre/fintech-supervisory-sandbox.shtml

Hong Kong Securities and Futures Commission (HKSFC)

Contact: Clara Chiu 

E-mail:  cklchiu@sfc.hk 

Website:  https://www.sfc.hk/web/EN/sfc-fintech-contact-point/sfc-regulatory-sandbox.html

Magyar Nemzeti Bank (Central Bank of Hungary)

Contact:   János Szakács

E-mail: szakacsj@mnb.hu

Website:  https://www.mnb.hu/en/innovation-hub/

Astana Financial Services Authority (AFSA) (Astana, Kazakhstan)

Contact:  Assylbek Davletov

E-mail:  a.davletov@afsa.kz 

Website: http://afsa.kz/fintech

Bank of Lithuania (LB)

Contact:  Jekaterina Govina

Email: JGovina@lb.lt

Website:  https://www.lb.lt/en/regulatory-sandbox

Monetary Authority of Singapore (MAS)

Contact:  Damien Pang

E-mail:  Damien_pang@mas.gov.sg

Website: http://www.mas.gov.sg/Singapore-Financial-Centre/Smart-Financial-Centre/FinTech-Regulatory-Sandbox.aspx

Abu Dhabi Global Market (ADGM)

Contact: Chris Kiew Smith

E-mail: chris.kiewsmith@adgm.com

Website: https://fintech.adgm.com/

Dubai Financial Services Authority (DFSA)

Contact: Alicia Kedzierski

E-mail: akedzierski@dfsa.ae

Website:  https://www.dfsa.ae/Fintech

Financial Conduct Authority (FCA, UK)

Contact: Paul Worthington

E-mail: paul.worthington@fca.org.uk

Website:   https://www.fca.org.uk/firms/fca-innovate  

Guernsey Financial Services Commission (GFSC)

Contact: Brett Bewey

Email:  innovate@gfsc.gg

Website:  https://www.gfsc.gg/commission/innovations/innovation-soundbox

Jersey Financial Services Commission (JFSC)

Contact:  Olenka Apperley

E-mail:  innovate@jerseyfsc.org

Website: http://www.jerseyfsc.org/the-commission/innovation-fintech-support/

 

Joining the GFIN – for regulators

The GFIN as an open initiative and continue to welcome interest from regulators and international organisations in joining the network in its early stages.

Finalising the terms of reference (PDF 544 KB) for on-boarding new members allows the GFIN to expand in a transparent way. Interested regulators and international organisations are invited to review the tiers of membership and consider the potential benefits and commitment levels that come with joining the network.

While launching cross-border testing has been an early priority for the group, regulatory members are able to just focus on the network and joint regtech work, rather than supporting trials.

For more information, organisations can contact any GFIN member or email the FCA at GFIN@fca.org.uk.

Full list of GFIN Membership

Coordination Group

Organisation

Jurisdiction

Australian Securities & Investments Commission (ASIC)

Australia

Central Bank of Bahrain (CBB)

Bahrain

Autorité des marchés financiers (AMF)

Québec, Canada

Guernsey Financial Services Commission (GFSC)

Guernsey

Hong Kong Monetary Authority (HKMA)

Hong Kong

Hong Kong Securities and Futures Commission (HKSFC)

Hong Kong

Astana Financial Services Authority (AFSA)

Kazakhstan

Monetary Authority of Singapore (MAS)

Singapore

Dubai Financial Services Authority (DFSA)

UAE

Financial Conduct Authority (FCA)

United Kingdom

 

Members

Organisation

Jurisdiction

Bermuda Monetary Authority (BMA)

Bermuda

Alberta Securities Commission (ASC)

Alberta, Canada

British Columbia Securities Commission (BCSC)

British Columbia, Canada

Ontario Securities Commission (OSC)

Ontario, Canada

Centrale Bank van Curaçao and Sint Maarten

Curaçao and Sint Maarten

Central Bank of Eswatini

Eswatini (Swaziland)

Magyar Nemzeti Bank (Central Bank of Hungary)

Hungary

Isle of Man Financial Services Authority (IOMFSA)

Isle of Man

Israel Securities Authority (ISA)

Israel

Jersey Financial Services Commission (JFSC)

Jersey

Capital Markets Authority (CMA, Kenya)

Kenya

Bank of Lithuania (BL)

Lithuania

South African Reserve Bank (SARB)

South Africa

Abu Dhabi Global Market (ADGM)

UAE

 

Observers

Organisation

Country

Qianhai Financial Authority

China

Consultative Group to Assist the Poor (CGAP)

Global

International Monetary Fund (IMF)

Global

World Bank Group

Global

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Last updated: 04/02/2019 11:19